Hilton Worldwide's business travel revenue per available room (revpar) increased by 3 per cent year-on-year in the final quarter of 2024, which was fuelled by a strong performance from big tech and financial services companies.
Christopher Nassetta said during an earnings call that he was more confident that this trend will continue through 2025 following the outcome of the US presidential election.
In Europe, Hilton achieved occupancy of 74.4 per cent in Q4, an improvement of 1.9 percentage points on the same period of 2023, while average daily rate (ADR) was up by 3.5 per cent to $162.13 over the same period and revpar rose by 6.2 per cent to $120.67.
The performance of Hilton’s European properties exceeded that of the overall group, which saw worldwide occupancy of 69.9 per cent in Q4, a year-on-year ADR increase of 1.9 per cent and a revpar rise of 3.5 per cent.
"As we look to the year ahead, we feel incrementally a bit better than we did a quarter ago," Nassetta said, citing Donald Trump's election win as at least a partial impetus for the stronger-than-expected Q4 results as well as the company's increasing optimism.
Suggesting the decisive nature of Trump's victory had allowed businesses to return to spending on travel quickly after election day in November, Nassetta added that Trump's return to office had offered corporates hope for economic growth - leading to increased demand for travel.
"There is a broad belief, and I would say fairly consistent amongst the folks that I talked to across a broad range of industries, that people think that the opportunity for economic growth in the short to intermediate term will be better," Nassetta said.
Nassetta pointed to an anticipated "lighter regulatory environment" in the US and more favourable tax policy as outcomes he foresees under the Trump presidency.
Trump's imposition last week of 10 per cent tariffs on goods imported into the US from China, following suspended tariffs on goods from Canada and Mexico, didn't dissuade Nassetta. He called the prospect of tariffs part of a negotiation with no guarantee they would remain in place.
Should tariffs remain, Nassetta said Hilton had diversified its supply chain in the years following the Covid-19 pandemic, which would reduce their impact.
"If you talk to all accounts, if you talk to large, medium, small, almost without exception, people are broadly saying that they're going to travel more," Nassetta said.
"They broadly understand that they're going to pay more for their travel because they understand the environment they're living in."
For full-year 2024, Hilton’s revenue rose to $11.2 billion, up from $10.2 billion in 2023, while net profit increased from $1.15 billion in 2023 to $1.5 billion last year.